There has been a lot of debate around the rumor that the next consoles from Microsoft and Sony would block used games. A lot of it seems to be based on conjecture and speculation, so I though I'd give a proper economic view on the matter.

Video Games, as a commercial product, have a paradox. Consumers love sequels, but at the same time there's no such thing as a golden formula that a game can copy forever. We are left being forced to both innovate and make sequels at the same time.